“The launch date hasn’t been fixed yet but should be in the next 3-4 weeks.”
Meet Andrew Maguire’s GAME CHANGER For the Physical Bullion Market:
By Larry White:
We have been following the somewhat cryptic comments that London metals trader Andrew Maguire has made about an event coming in the gold market that he suggests will be significant. We submitted a brief written set of questions to his representative to get more details, but have not heard back yet. We believe Mr. Maguire has probably been traveling and working on activities related to the launch of the new product he has hinted at. If he does get time to reply, we will publish his answers to the questions.
Meanwhile, we did a little sleuthing and actually have found quite a bit of information about this new gold backed cryptocurrency. David Gibson of Goldvu.com confirmed by email that this is the new product Andrew was talking about. It will be called Bullioncoin. Here is quite a bit more detail about it. Below are some key bullet points from the web site on how it will work and then a few added comments.
SIMPLE SUMMARY OF HOW IT ALL WORKS
- Primary market participants buy physical precious metals at the wholesale contract rates & hold Title of Ownership to it
- Those participants then authorise for BullionCoins to be created/minted against their precious metals
- Minting / creating BullionCoins is just a process of digitisation of the Title of Ownership to that metal
- Primary market participants then sell those digital coins into the secondary (retail) market
- That sale, is the selling of the Title of Ownership from the primary market participant to multiple retail investors
- The digital coins that those investors now hold, act as an electronic Bearer’s Title to the physical gold & silver that’s backing it
- Coin holders can use them in transactions and trades, in the same way that you use fiat currency
- As the coins are electronic Bearer’s Titles to the physical precious metals backing them, investors holding those coins can then redeem them at any time in exchange for the equivalent quantity of physical gold & silver that those coins represent
My added comments: Now that we see how this new gold backed cryptocurrency product will work, a question in my mind was if the 250 tons of gold buy orders that Andrew Maguire has talked about recently might tie in to the launch for this new product. I am advised by David Gibson of GoldVu (see email exchanges below) that the two events are likely separate and that as far as he (David Gibson) knows the 250 tons of sovereign gold buy order does not relate to the launch of the new gold backed cryptocurrency – only Andrew can confirm that.
This is an interesting new product. It appears to actually combine block chain technology with a new cryptocurrency coin 100% backed by physical gold and silver. The gold Bullioncoin will be equivalent to one gram of gold while the silver Bullioncoin will be equivalent to 50 grams of silver. (note: 1 troy ounce = 31.1 grams)
Investors or institutions that want to be part of the startup process of providing initial liquidity will be offered an opportunity to earn a yield on the newly minted Bullioncoins produced as they are bought and sold over time. The yield comes from a portion of the transaction fee for buying and selling the coins. I assume block chain will be used to track each coin over its life as it is bought and sold.
According to the web site, the coins can also be convertible to actual physical gold or silver at any time and account holders will be issued a debit card allowing them to also be able to spend the coins around the world like cash. To make a purchase using the debit card, the gold or silver backing the coin is instantly converted into the currency of the country desired at the then current spot price for gold or silver at the time of purchase as I understand it from looking at the web site. Here is the info from the web site on that:
THE BULLIONCOIN DEBIT CARD
Finally, how did I confirm that this is the new cryptocurrency product Andrew Maguire has been talking about? I contacted David Gibson and asked him directly. He says the product launch should be in the next 3 or 4 weeks and he also clarified his role in the process. Below are my email exchanges with him. This will be an interesting story to continue to follow over time. I expect a lot of interest in this globally.
My email dated 7-19-17:
Can you confirm if this is the new gold backed cryptocurrency product that Andrew Maguire has mentioned recently in his comments on Twitter? If so, do you know the launch date yet?
David Gibson Managing Director
Reply from David Gibson on his role with BullionCoin & the 250 ton gold buy order - dated 7-19-17
“I am advised by David Gibson of GoldVu (see email exchange below) that the two events are likely separate and that as far as he knows the 250 tons of sovereign gold buy order likely does not relate to the launch of the new gold backed cryptocurrency – only Andrew can confirm that.”